Bitcoin (BTC) fell below the $113,000 support level on Thursday, reaching an intraday low of $112,147. The leading cryptocurrency has lost nearly 5% in the last week, contributing to a negative outlook in the market.
Data reveals that more than $40 million worth of bitcoin derivatives were liquidated in the last hour alone, with $28 million coming from long positions. Open interest in futures and options has been increasing, indicating that traders are positioning themselves for volatility.
One major factor behind the price decline has been ongoing outflows from spot bitcoin ETFs, which have reversed the strong inflows that drove gains earlier this year. Some analysts highlight the general weakness in U.S. stocks ahead of Federal Reserve Chair Jerome Powell’s much-anticipated Jackson Hole speech on Friday.
Adding to the pressure, Arkham Intelligence reported that Bhutan transferred nearly 800 BTC (about $92 million) to exchanges, although the country still holds over 10,500 BTC, valued at just over $1 billion. Others believe the recent drop could simply be a natural correction after bitcoin’s rally to $124,000 on August 14.
Market participants are now looking forward to Powell’s remarks for guidance. His comments could either strengthen the bearish trend or trigger a short-term recovery. In the meantime, investors are paying close attention to ETF flows, correlations with the stock market, and government crypto movements as key short-term influences.
Despite the volatility, bitcoin’s long-term path is still expected to depend on macroeconomic policies and institutional acceptance. Whether this downturn will turn out to be a temporary dip or the beginning of a more prolonged consolidation phase will be tested in the coming days.
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